xAI Sues OpenAI for Stealing Secret Information
Date: 2025-09-26 Author: Oliver Abernathy Categories: BUSINESS
xAI, founded by Elon Musk, has filed a lawsuit against OpenAI in a California federal court. The lawsuit alleges that OpenAI is aggressively recruiting former xAI employees to gain access to classified information related to the development of the Grok chatbot and the construction of data centers.
According to the plaintiff, OpenAI is seeking access to its competitor's source code and internal business strategies. Specifically, these include methods for optimizing data center infrastructure. The complaint alleges that former employees, despite signed confidentiality agreements, are sharing information valuable to their new employer for competition in the AI market.
The lawsuit specifically focuses on the case against former engineer Xuechen Li. He is suspected of passing documents and materials to OpenAI. Lee himself has not responded to the allegations. Two other xAI employees—engineer Jimmy Frature and a senior finance executive whose name has not been disclosed—have also joined OpenAI.
xAI stated that in addition to OpenAI, its claims also concern Apple. Musk's company claims that Apple conspired with OpenAI to limit competition in the field of artificial intelligence. Apple representatives have not yet commented on the situation.
This conflict unfolds amid existing legal proceedings between Musk and OpenAI. The billionaire previously accused the company of deviating from its original mission—developing AI for the benefit of society—and of excessively commercializing its technology. In response, OpenAI filed a countersuit, accusing Musk of inappropriate behavior and business ethics violations.
Notably, such proceedings are becoming part of a larger struggle for leadership in the artificial intelligence industry in Silicon Valley. Companies compete not only for technology but also for key specialists whose knowledge can provide a competitive advantage.
Thus, the standoff between xAI and OpenAI is gradually evolving beyond a corporate dispute, developing into a major conflict involving leading players in the tech market. The situation remains tense, and in the coming months, the court may determine the future course of events.
